The U.S. government has ordered Danish energy company Ørsted to halt offshore construction on its Revolution Wind project, a significant setback for one of its key American assets.
The stop-work order was issued on Friday by the Department of the Interior’s Bureau of Ocean Energy Management, the company said in a statement.
The project, a joint venture with Global Infrastructure Partner’s Skyborn Renewables, is 80% complete, with all foundations and 45 of its 65 turbines installed, according to Ørsted.
The company said it is complying with the order and evaluating all options to resolve the matter, including engagement with permitting agencies and potential legal proceedings.
The halt complicates Ørsted's recently announced plan to raise 60 billion Danish kroner through a rights issue to shore up its finances.
That plan was launched earlier this month after the company scrapped the partial sale of another U.S. project, Sunrise Wind, citing adverse market conditions.
Ørsted said it is evaluating the potential financial implications of the stop-work order and will advise on its impact on the planned rights issue.
The development is the latest challenge for Ørsted in the U.S., where it canceled its large Ocean Wind 1 and 2 projects in late 2023.
The Revolution Wind project has 20-year agreements to supply power to Rhode Island and Connecticut, enough for over 350,000 homes, the company said.
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